The term 'Seigniorage' refers to: MCQ with Answer and Explanation

The term 'Seigniorage' refers to:
A. Revenue from income tax
B. Profit earned by the government from printing currency
C. Deficit financing through external loans
D. Interest paid on government bonds
Answer: Option B
Solution (By JKSSB Mock Tests)
Seigniorage is the difference between the face value of money and the cost of producing it; it represents the real resource gain to the government from issuing currency.

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Practice More Economy Set 1 Questions

Question #1
In the context of urban economics, 'Agglomeration Economies' refer to:
A. The costs of congestion only
B. Only the disadvantages of density
C. The productivity benefits that firms and workers derive from locating in close proximity to one another
D. The complete absence of any spatial effects

Correct Answer: Option C


Explanation:
Agglomeration economies are the benefits—knowledge spillovers, labour-market pooling, input sharing—that arise when economic activity is concentrated in space, helping to explain the existence and growth of cities.

This question belongs to: Economy GK Economy Set 1
Question #2
National Electronic Funds Transfer is used mainly for:
A. international remittances
B. batch-wise electronic transfer of retail funds
C. stock market trading
D. high-value real-time transfers only

Correct Answer: Option B


Explanation:
NEFT settles retail fund transfers in batches, unlike RTGS.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' has subsumed taxes like entry tax, which has helped reduce:
A. direct tax
B. customs duty
C. income tax
D. check posts and barriers at state borders

Correct Answer: Option D


Explanation:
Subsuming entry tax reduced state border check posts and barriers.

This question belongs to: Economy GK Economy Set 1